AME Info, Abu Dhabi, United Arab Emirates, energy, oil and gas briefs

12:35 p.m. EST, May 8, 2012|AME Info

KD1.5M SOLAR PROJECT DEAL INKED IN KUWAIT: Kuwait Petroleum Corp (KPC) has signed an agreement with Kuwait Institute for Scientific Research (KISR) to execute the second stage of a solar energy project costing KD1.5m, Kuwait Times has reported. The project aims to promote solar energy applications in electricity generating, and reduce reliance on traditional energies, said the chief executive of KPC, Farouk Hussein Al-Zanki.

SAUDI ARAMCO TO INCREASE OIL PRODUCT TRADING TO 1.5M BPD: Said Al-Hadrami, the chief executive of Saudi Aramco Products Trading Co has said the company's refined oil products trading volumes is expected to rise to 1.5 million barrels per day (bpd) as its downstream business expands, Reuters has reported. Hadrami did not disclose how long it would take to reach the target from a current traded volume of 500,000-600,000 bpd of refined products, condensate and sulphur. Aramco Trading, a subsidiary of state-run Saudi Aramco which plans a major increase in its refining capacity, started commercial operations in January.

UAE'S FNC DEMAND CHEAPER PETROL PRICES: The UAE Federal National Council (FNC) has demanded petrol prices be brought in line with other Gulf countries, a move that could make prices cheaper by up to 60 percent, Gulf News has reported. A six-member ad hoc committee was formed to study the viability of subsidising petrol after FNC members complained higher prices of petrol had a negative impact on the prices of other products and services and economic development as a whole. "The petrol price in the UAE is the third highest in the Arab world after Syria and Tunisia, which does not fit a country that is ranked seventh in the world with an oil reserve of 97.8 billion barrels or 6.65 percent of the world's oil reserve," said the committee in its report.

KUWAIT GULF OIL CO REACHES FOR 350,000 BPD: Hashem Al-Rifaee, chairman and managing director of Kuwait Gulf Oil Co (KGOC) said the company is aiming to raise its oil output to 350,000 barrels a day (bpd) by 2014-2015 from the current 250,000 bpd, Kuna has reported. The company also aims to increase the daily output of gas, extracted out of the oil fields, to 500 million cubic feet by 2014-2015, he said.

OPEC OIL OUTPUT TARGETS NOT YET ON AGENDA: Youcef Yousfi, the Algerian energy and mines minister has said raising the output target set by the Organisation of the Petroleum Exporting Countries is not on Opec's agenda for now but probably will be, Reuters has reported. Opec is scheduled to meet next on June 14 in Vienna, where it is likely to focus on quotas and production. At a meeting in December last year, the organisation's production target was set at 30 million barrels per day, which came under pressure after oil prices in March jumped to $128 a barrel, the highest since 2008, though they have since fallen back a little.

KUWAIT FOREIGN PETROLEUM EXPLORATION SCRAPS ITHACA ENERGY BID: Kuwait Foreign Petroleum Exploration has walked away from takeover talks with North Sea-focused oil and gas explorer Ithaca Energy, Reuters has reported. A UK newspaper reported in March that the Kuwaiti group was in advanced takeover talks with the company, which is also listed in London.

IRAQ BOOSTS POWER OUTPUT, 7,450MWS BY JUNE: The Iraqi electricity ministry has said it expects to produce 7,450 megawatts (MW) of power in June, Bloomberg has reported. Output is forecast to increase to 10,400 megawatts by December and 12,330 megawatts by April next year, the ministry said. The estimates include imports from Iran, Turkey and the UAE, and are based on new power plants producing at 80 percent of designed capacity, it said.

FOUR TEMPORARY POWER GENERATORS ISSUED LICENSE EXEMPTIONS IN OMAN: Oman's Authority for Electricity Regulation (AER) has issued licence exemption orders to four companies to collectively generate 299MW of power on a temporary basis to support the main grid during the summer months. Muscat Daily has reported. The exemption orders were issued to Bahwan Enterprises (24MW); Oasis Trading & Equipment Co (75MW); OFSAT (160MW); and Sakr Energy Solution (Oman Branch) (40MW). "This will be the last time temporary diesel generation will be required as the Barka III and Sohar II IPPs that are being commissioned with shortly commence commercial operation," said John Cunneen, AER executive director.

SWEDISH FIRM WINS ORDER FOR SAUDI GAS: Alfa Laval has announced it has won a contract to supply heat exchangers for a natural gas project in Saudi Arabia, Saudi Gazette has reported. The $11.7m deal will see the Swedish firm provide heat exchangers to be used in a new major gas processing facility in the kingdom dedicated to recover energy in the gas cleaning process, bringing down power consumption and CO2 emissions. The project is scheduled for completion in 2013, the company said.